SEC Charges Tesla CEO Elon Musk with Fraud for Irresponsible Social Media Posts

cageymaru

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Social media darling and Tesla CEO Elon Musk has been charged with fraud by the Securities and Exchange Commission (SEC) for a series of tweets in which he announced "Am considering taking Tesla private at $420. Funding secured." He later said that he was in talks with the Saudis to fund a bid to go private. They have accused him of picking the $420 stock price as a marijuana reference to amuse his girlfriend, making "false and misleading" statements, and a failure to notify regulators of material company events. They also allege that the affable CEO didn't notify Tesla executives as texts from higher ups in the company showed complete and utter surprise at Musk's announcement. The lawsuit can be read here.

"A chairman and CEO of a public company has important responsibilities to shareholders," Stephanie Avakian, co-director of the SEC's division of enforcement, said during the press conference. "Those responsibilities include the need to be scrupulous and careful about the truth and accuracy of statements made to the investing public, whether those statements are made in traditional forms such as a press release or an earnings call or through less formal methods such as Twitter or other social media." "Neither celebrity status, nor reputation as a technological innovator provide an exemption from the federal securities laws," she said.
 

WBurchnall

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It's like a room full of people, giving a press conference, that haven't gotten laid in two decades causing a complete loss of any sense of humor she might have originally had. What's clearly intended as a joke on twitter, is now considered fraud. Really? It's almost like they want to take down a visionary for any reason possible because he's threatening big oil or some monopoly.
 

TheHig

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The big 3 have done a pretty good job of keeping any other American auto company from ever happening. Musk is on a lot of shit lists so really not surprised at some sort of action here since he was flying off the handle on the tweeter. We are getting most every major auto maker now working on electric vehicles. Tesla’s successes pushed everyone to get in sooner I feel.
 

alamox

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seriously ? is SEC looking for media coverage ? because these charges are BS
 

zehoo

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What he said must have screwed up some of the trading companies that use algorithms to buy and sell shares automatically. The server not realising that this was a joke probably went and lost a few companies a fair amount of money before a human stepped in to cease the automatic trades.

They're probably just using their bought and paid for friends at the SEC to get some revenge.
 

ccityinstaller

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What he said must have screwed up some of the trading companies that use algorithms to buy and sell shares automatically. The server not realising that this was a joke probably went and lost a few companies a fair amount of money before a human stepped in to cease the automatic trades.

They're probably just using their bought and paid for friends at the SEC to get some revenge.
Maybe Taylor Mason's AI messed up and she lost the cray cray Russian Killer Billionaire's money so she was all like "eeeK! Mcfee call the SEC! I will go eat some noodles and hope my alternate lifestyle look will protect me!"




:ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO:
 

PenGunn

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Wow. I dunno, he's obviously guilty of what they are charging him with. I enjoy hubris at that level, although I'm sure many don't. ;)
 

Oldmodder

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Did Elon forget to pay his bribes this month ?

yeah day-traders probably need to get a little disruption onto their algorithms. :)

PS. i am not a fan of Elon, though i think space X are pretty darn cool.
 

Devastadus

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I find it hilarious and sad a 9 word tweet is fraud now. The stock market is a gamble in the first place it used to be looking at charts, sales and predictions to figure out what a stock was worth.

I remember around 2008 Steve jobs coughing a few times at a keynote and the stock dropping is that fraud? Hell Trump tweets a bunch of crazy stuff true or not and it shifts the stock market one around, is that fraud as well? Jeff Bezos warren buffett and bill gates have a meeting on Healthcare and healthcare stocks tank is that fraud now? Any powerful person can do the tinniest thing and Shareholders are so twitchy even the tinyest shift of the wind can greatly impact stocks. Now people cry foul when a unforeseen circumstance shifts the market because they lose money it is pathetic.
 

Burticus

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So the SEC is going to prove that tweets are cause for lawsuits now? Huh.

something something Trump something twitter rants something lawsuits something ? Just mumbling out loud

Since The Trump machine, tweets are not consider truth anymore. Whos going after the President? I'll bet he uses the "Trump" defence. :)
Yep that could work. Twitter is for entertainment purposes only and cannot be used as a basis for lawsuits or as evidence in court. I would say if I was a lawyer, which I am certainly not.
 
D

Deleted member 93354

Guest
The big 3 have done a pretty good job of keeping any other American auto company from ever happening. Musk is on a lot of shit lists so really not surprised at some sort of action here since he was flying off the handle on the tweeter. We are getting most every major auto maker now working on electric vehicles. Tesla’s successes pushed everyone to get in sooner I feel.
He's quickly becoming Tucker. He will fail just short of the finish line. But the shit he is doing is f'n stupid.

https://en.wikipedia.org/wiki/Tucker_48
 

joobjoob

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Oh look the guy opposing several mega-international conglomerates has governments hounding him.

Democracy has a way to deal with this right? Right?
 

Eickst

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I can't take him seriously until he shaves. If you can't grow a real beard just shave every day. Some men need to give it up, stop trying, let it go, you don't look cool or hip or whatever with that weedy looking beard. Next thing he'll have a man bun
 

Eickst

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So the SEC is going to prove that tweets are cause for lawsuits now? Huh.

something something Trump something twitter rants something lawsuits something ? Just mumbling out loud



Yep that could work. Twitter is for entertainment purposes only and cannot be used as a basis for lawsuits or as evidence in court. I would say if I was a lawyer, which I am certainly not.
Except for that pesky part where in public filings with the SEC they listed social media as one of their official communication channels.....ooops
 

OpenSource

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Oh cool, SEC goes after tweets but surely won't investigate CEOs dumping stock before companies have massive losses.

I don't care that they're going after Elon, but I do care that they let so much other real questionable behaviors slide without flinching.
 

Cmdrmonkey

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Elon is such a dudebro

Even with his billions of dollars he’s still just a weed smoking dudebro at heart.
 

tangoseal

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Shit I'm gonna be buying a Model 3 soon. Fuck it. I'm an Elon fan. Still gonna buy it.
 

tikiman2012

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Except for that pesky part where in public filings with the SEC they listed social media as one of their official communication channels.....ooops

Didn't he use his private account & not the official Tesla account? Wouldn't someone posting their thoughts & ambitions on their private Twitter account fall under Free Speech? If he had used Tesla's official Twitter account then I could understand it, but he didn't.
 

HockeyJon

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It's like a room full of people, giving a press conference, that haven't gotten laid in two decades causing a complete loss of any sense of humor she might have originally had. What's clearly intended as a joke on twitter, is now considered fraud. Really? It's almost like they want to take down a visionary for any reason possible because he's threatening big oil or some monopoly.
Are you kidding me? He’s the CEO of a publicly traded company a clearly violated SEC rules. A lot of people traded the stock based on that information, and financial analysts speculated for a while after the tweet over whether or not it was true. It was all over the financial news. A lot of people would have lost money as a direct result of this. There was no indication anywhere of “lol, jk” within the tweet, and even if there was, he’s a CEO of a major publicly traded company and should probably act like one when he’s in public.
 

Smashing Young Man

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I guess Einstein also falls into that accurate, assumptive stereotype too?
Did Einstein for certain smoke weed? Regardless, I roll my eyes at marijuana defenders who point to this or that brilliant person who smoked, as if to imply that they were geniuses because of weed, not despite it. Marijuana did not give us E=mc2, I assure you.

For the record, I support marijuana's full legalization, but that doesn't mean I don't take a dim view of those who regularly smoke it outside of medical reasons. If you depend on marijuana to relax, have a good time, or to attain insights you're otherwise blind to, then that's a weakness.
 

aokman

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I wish people would just fk off and let Elon do his thing. Think you can do better? Prove it.
 
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YeuEmMaiMai

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he could have kept his wits about him but nope.. he got bit by the dumbass bug and now he is on a long downward slide....
 

M76

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Lying through the teeth does not amuse shareholders, whoddathunkit?
Twitter is not a press release platform. Posting something there is as good as saying something off hand in a small crowd. Is that considered fraud now? Because then I'm constantly engaged in fraud when jokingly talking to friends.
 

capt_cope

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Twitter is not a press release platform. Posting something there is as good as saying something off hand in a small crowd. Is that considered fraud now? Because then I'm constantly engaged in fraud when jokingly talking to friends.
Yeah, I remember the good old days, just jokingly talking in a "small crowd" of 22.7 million of my friends...
 

DrBorg

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The SEC just filed this so they could cover their short positions, lol.
 
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